Like Kenny Rushing, more investors are gradually dipping their fingers on bulk REO deals, silently discovering that the freshly-carved niche of the property industry is a potential rich source of financial windfall.

At present, most real estate agents, brokers and investors regard the bulk dealings of real estate owned properties as naturally risky but REO expert Kenny Rushing explained that such misconception could be the result of relatively scarce information about this emerging real estate niche market.

Rushing stressed that typically, investors were mostly dependent on personally appreciating the properties targeted for acquisitions but with bulk REO packages of up to 500 properties, this could be physically and logistically impossible when properties covered by the deals were located in various cities across the nation.

On that account, Rushing said that the assistance of trusted field agents would be most helpful in inspecting the properties in question.

Following the property meltdown in the United States, thousands of properties are marked for REO deals, which were initially foreclosed and offered into auctions but failed to attract serious bidders.

Some of the properties were even subjected by banks to short deal negotiations, in hopes of disposing the properties and still collect some cash but many of these deals fell through either due to the long wait required by the process or prospective buyers ended up being disinterested or worst, running out of funds.

These ‘abandoned’ properties are now deemed REOs and could quickly morph into money pits on the part of the banks, which then were forced to hold and maintain an overflowing reservoir of properties in order to entice possible buyers.

Rushing said that with the hordes of defaulted loans and non-performing assets on their books, banks started seeking ways to dispose such toxic assets and one of the easiest ways of doing that is to pool the foreclosed properties and offer them to investors as bundled bulk REO offerings.

He added that by bundling up bulk REO properties and selling them with substantial discounts, banks would free themselves from the burden of maintaining the properties, paying up the corresponding property taxes and complying with Federal and State bank regulations as the toxic assets were stricken out of their balance sheets.

These properties now offer opportunities for investors who are willing play the market.

And according to Rushing, almost everyone can play the field and if they do not want to invest or do not have sufficient cash, they can instead broker bulk REO deals at the comfort of their homes and using only a computer, a phone and a fax machine.

All three would prove handy in communicating with fellow brokers, bankers and investors in discussing the deal and receiving important documents in finalizing the sale.

Rushing said that the whole process of contracting and sealing a bulk REO deal could be summed in six steps such as identifying the properties, looking for the prospective buyer, facilitating the negotiations, due diligence, arranging for the master fee agreement and preparing the final contract for actual closing of the deal.

Kenny Rushing is offering a free report on Bulk REOs called The Arbitrage Conspiracy